Mortgage Rates Keep Climbing

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Mortgage Rates Keep Climbing The average mortgage rate just hit 7.07% -- the highest level in more than 20 years. The housing market is feeling the effect. Homeowners don’t want to sell because many of them refinanced during the low-rate era. What if they sell? They may have to take out a new loan at the current rate. So, they are staying put. This dwindles the supply of homes for buyers, putting housing prices at a standstill. Plus, mortgage lenders laid off thousands of workers due to reduced activity. (Source: WSJ) Wall Street is starting to believe that the Fed Reserve may do another rate hike. That led to a sell-off in the Nasdaq 100. The tech-heavy index fell 3.2% in the last three days. But the pullback has been soft – compared to the previous periods when Treasuries climbed this much. - “Tech stocks — and certainly equities broadly — are feeling the weight of rising real yields, but thus far not to the extent that we have seen during past episodes of rising yields,” said Tom Garretson, a senior portfolio strategist with RBC Wealth Management. - “During past periods over the last three years of similar rises in real yields, we have seen tech pull back by about 7% to 15%.” What’s more, yesterday’s initial jobless claims came in very low. Meaning? The economy remains healthy, giving the central bank a room to hike rates if needed. - “This week’s data hasn’t given them any reason to let their guard down,” said Mike Loewengart at Morgan Stanley Global Investment Office. “With housing starts, retail sales, and jobless claims all reinforcing the picture of a robust economy, another rate hike can’t be ruled out, even if the Fed remains on hold next month.” After these recent economic data, investors will pay close attention to what Fed officials said at their annual meeting in Jackson Hole, Wyoming next week. Some analysts believe a pause is likely in September, but there could be a hike in the month after. - “Our baseline is the Fed will not likely alter rates at the next meeting but the following meeting decision is yet to be determined,” said Jeffrey Roach, chief economist at LPL Financial. “Treasury yields are hitting new highs as investors reset expectations about long-term inflation.”  A High-Yielding Dividend Stock With Strong Revenue Growth Today’s Stock Pick: Agree Realty Corporation ([ADC]() Dividend stocks aren’t always the most glamorous. But they underscore one of the most famous lessons in wealth management: - “If you don’t find a way to make money while you sleep, you will work until you die.” — Warren Buffett. Today’s stock offers you an unusually high dividend yield… and… growth. Agree Realty rents to some of the world’s most recognizable retail brands, including Walmart, Best Buy, TJ Maxx, Walgreen’s, and AutoZone. (Source: Agree Realty) You know the story: Retail got hammered by the pandemic. But not Agree Realty, which grew its revenues 26.8% even during the worst year for the retailers. The reason is simple, Agree makes a deliberate effort to rent to recession-resistant retailers that have strong online marketing strategies and good fundamentals. - As a result, only 4% of its portfolio took hits thatyear: LA Fitness and Planet Fitness (2.1%), AMC, Cinemark, and Regal (1.2%), and Dave & Busters (0.7%). In other words, Agree passed the greatest stress test in years. In fact, Agree leads the industry in tenants with investment-grade credit. Of course, recession-resistant retailers with strong online marketing and good fundamentals also have investment-grade creditworthiness, making these companies reliable tenants. (Source: Agree Realty) Reliable tenants are fueling a 27% revenue CAGR over the past 11 reported years. Revenue has grown every year for the past decade, compounding from $30.3 million in 2011 to $429 million last year. (Source: Macrotrends) That’s because Agree Realty is investing aggressively in growth through property acquisitions. The amount invested in acquisitions ramped up since 2016: (Source: Agree Realty) Agree is also growing responsibly though. The company has plenty of coverage to service debt, most of which doesn’t mature for more than 5 years. (Source: Agree Realty) What about those dividends you mentioned, though? You might remember I told you REITs are legally required to distribute 90% or more of earnings as dividends. Well, you’ll enjoy these dividend figures: - ADC has a forward dividend yield of 4.74% - The company has also increased dividends for the past 10 years. (Source: Agree Realty) Bottom Line: Agree Realty Corporation (NYSE:ADC) offers the best of all worlds. It grows dividends reliably while being aggressive to expand its revenues. Add this dividend stock to your portfolio and enjoy making money from top retailers while you sleep. [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.